Centre looks at overhaul of MSME Development Act 2006

The government is undertaking a comprehensive review of the Micro, Small and Medium Enterprises Development Act, 2006, aimed at updating its provisions to align with current economic realities and challenges faced by the sector.\r

Key aspects under scrutiny include redefining the criteria for classifying MSMEs, potentially shifting from dual criteria of investment in plant and machinery and annual turnover to solely annual turnover to harmonize with GST norms. Sectors like diamond polishing, gems and jewellery, and pharmaceuticals, which experience high turnover due to value addition, will benefit from this clarity.\r

The review also encompasses enhancing measures for promoting competitiveness among MSMEs and revising provisions related to delayed payments to expedite settlements and ensure facilitation council awards are implemented promptly.